There’s a new tax credit that you may find useful if you’re a home-owner who will be trying to get under the tax line :
The law both increases tax credits for commercial solar installations and offers individual homeowners a credit for the first time in 20 years. (An earlier personal-use solar credit was in effect .)
Interested in claiming a credit? Act fast. To hold down the projected cost, Congress authorized the solar credits for only two years — .…
Homeowners… can put in a photovoltaic system (roof panels that take in energy from the sun and turn it into electricity) and/or a solar-powered hot water system (for hot water heaters, radiant floors or radiators), and get a federal tax credit worth 30% of the systems’ cost, up to a credit of $2,000 per system. There are a couple of catches: The heating system can’t be for a pool or hot tub, and the federal credit applies to the net system cost after any state incentives.
The good part is that this new federal break is a credit — not a deduction — meaning it reduces your tax bill directly, dollar for dollar. So, if you install both eligible solar systems in your house, you can knock $4,000 off your federal tax bill. And if you have more credit than you owe in tax, you can carry it over and use it to defray next year’s federal tax bill.